On Jan. four, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square stock at an average price of $219.53.
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The stock sale is actually an element of planned sales by the billionaire co founder. He began the weekly sales of 100,000 shares on Nov. 16. Since that time, he has sold 700,000 shares by using the latest divestiture of his on Jan. 4.
Estimating the entire sales, he likely generated $160 million in pre-tax proceeds. Heck, even billionaires have bills to pay.
If you are considering selling based on these planned sales, do not. Square’s got lots of space to work in 2021.
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Square Stock Hits $300 Square stock is today trading at at least $240. Since Jan. one, the stock is up over ten %.
And that’s in addition to the 245 % gains it realized in 2020, something I’d a suspicion would happen. Here’s what I wrote on Jan. 3, 2020:
Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of around $500,000 grew 700 basis points to 27 %. Meanwhile, those sellers with a yearly GPV of less than $125,000 dropped 700 basis points to 45 %. At the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to twenty eight %. Why is this critical? It shows that the company’s revenue has grown to be much more diversified; it today gains from payment processing across businesses of all the sizes.
How is it doing a year later on this front?
In the third quarter of 2020, sellers with annual GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That’s up 270 basis points from the earlier year. Sellers with annual GPV between $125,000 and $500,000 were $8.7 billion in Q3 2020, or maybe 10.1 % higher than in the third quarter a year earlier. These two groups accounted for sixty one % of seller GPV within Q3 2020, 500 basis points higher compared to the earlier 12 months.
Sure, sellers with annual GPV under $125,000 still accounted for 39 % of general seller GPV, but it shows bigger companies’ acceptance rate, that is critical to the ongoing growth of its.
To get to $300 sooner in 2021, 2 things have to keep growing: Cash App, its finance app, and Square Capital, its lending platform.